Tax Treatment of Dividend
The Dividend that you earn on your Shares (savings) is subject to a tax called DIRT (Deposit Interest Retention Tax).
The 2017 Government Budget made the following changes to DIRT.
- The rate of Deposit Interest retention Tax will decrease by 2% each year for the next 4 years until it reaches 33%.
- This is an automatic deduction, all financial institutions are to deduct this DIRT at source.
Please note if you are exempt from paying DIRT, you are exempt from paying the 41% DIRT rate. If you are exempt from paying tax, please fill in a DE1 Form in Cara Credit Union.